So after showing and discussing horror stories, with photographs no less, the person was less interested in the subject of your discussion? Big surprise. Welcome to cognitive dissonance.
you've split, juggled, and then confused three of my counter-comments out of context from the original discussion. I had put forth an example of why 18 year olds don't understand compound interest. you're now three-nested-arguments deeper from there.
try commenting on the original point -- that their parents don't have any idea how much dollars they are paying in interest. That was the only point. Forget about my very rough examples of my situation without any details. I'm in a different country than you, with a different banking system than yours. I never said anything about a HELOC. My mortgage is likely, and apparently, nothing like yours.
I said borrow against my home equity. I never said anything about a line of credit. Why the hell would I ever use a line of credit when a mortgage is so very much cheaper?
damn, no mod points. mod up please.
always a bucket sort. but they don't teach those in CS courses.
teachers get trained every few years.
curriculum gets changes every few years.
school board gets trained every few years.
that means from the time something new and obvious to teach appears, it takes ten years to get into the classrooms.
and some things are multi-year lessons that can't just be thrown into grade 12. so it's another four years until the grade 9 student graduates.
so it's basically 15 years from when an obvious idea with zero resistance at any stage along the way actually makes it through.
15 years ago, college was a great idea because most job openings came down to applicants without advanced education.
today, it's not like that. today, most applicants actually do have college degrees. so competing on that front puts you into the bigger pile, not into the smaller one.
but here's the better answer to your question. because high school is taught by teachers, and principles, and school boards. Not a single person in the entire system is an entrepreneur. Not even one. Even the private tutors for hire are teachers-by-day. The only entrepreneur in school is the guy selling drugs in the parking lot.
like some of us do, did, and continue to do. many business don't need more than $1'000 of capital. Some need absolutely zero. Most need zero experience. The only thing that they require is that you guarantee your work. That's easy to do: don't charge until the job is done. That's it. It's not complicated.
Except that in grade six, on career day, they didn't have any presentations by entrepreneurs. So you needed to figure it out for yourself -- which is the very definition of starting your own business.
start your own business.
dude. different country. different career. different life. none of that applies to me. I'm not an employee and there is no such thing as a 401k.
You said: 230 000*3.5%*10 = 80 500
That's not what actually happens.
It's half of that.
Because it's not 230 000 after the first month.
It gets smaller with each payment.
Too many to read. I'm skipping the cowards.
you are most definitely correct, I missed the "especially"; that's embarassing.
but I can say that with my own investments over the years, even down to simple GICs, ten year commitments has gotten me far more than 5%. Even my current mutual funds seem to get me 10% per year -- 20% this past year, not that I have enough invested to make much of a difference.
you've taken small counter-arguments directed at specific earlier-arguments and are treating them as whole concepts out of context. that's not the original debate.
counting is not math. math is a shortcut to counting because counting takes longer and more effort, sometimes unreasonably so.
keep reading, throughout I've said "for my situation, for me, with my numbers, do your own". but if you're paying off your mortgages in 5 years, then you're agreeing with me. we're not talking about the piece of paper than reduces your options. we're talking about the real-world, real-time, number of years for which you have and are paying for your mortgage. no one cares what the paper says.
Dude, my mortgage also "says" 30 years.
Nice try. Again, as I've commented elsewhere, only your second mortgages are worse rates than the first. My second mortgages aren't. Playing with money later comes with greater intelligence (as in intel), it's fore-sight, and it's retro-actively psychic. If you believe that your first mortgage rate is the best rate you'll ever get, and the current stock rate is the best it'll ever be, then you've made the right choice by the definition of your expectations for the future. And the bank is very happy about that.